Egypt may resume LNG exports
VIENNA: Egypt may have just issued its last liquefied natural gas (LNG) tender, setting the stage to resume exports next year.
Imports of LNG might stop in the fourth quarter, allowing for exports to start early next year as Eni SpA’s Zohr and other gas fields boost production in the country and help to draw more foreign investment, said Petroleum and Mineral Resources Minister Tarek El-Molla.
The final LNG import tender was issued to cover third quarter domestic requirements, and the fourth quarter should be “imports-free”, he said.
“I don’t think there will be more tenders beyond this, I think this is it,” said El-Molla, here, on Saturday. “Local production should cover our needs.”
Egypt has to import liquefied gas at high costs to meet its energy needs, with traders from Glencore Plc to Trafigura Group Pte Ltd winning tenders to supply the fuel in past years.
However, Eni’s discovery of Zohr in August 2015 has the potential to satisfy much of the nation’s demand and may even transform the country into having a surplus of supplies.
The giant Zohr field would increase gas production to 1.7 billion cubic feet a day by August from 1.2 billion cu ft, he said.
Egypt’s total output was six billion cu ft a day and that should increase to 6.5 billion by September, said El-Molla.
Once it had a sufficient surplus, Egypt would start compensating companies that had rights to operate the country’s LNG export terminals, including Royal Dutch Shell Plc and Union Fenosa SA, said El-Molla.